Tether says it has $1.8 billion in Bahamian Bank

Tether, the company behind the controversial namesake cryptocurrency, said it has a bank account with Bahamas-based Deltec Bank & Trust Ltd.

In a statement Thursday, Tether attached a letter attributed to Deltec saying that the crypto company had $1.8 billion (R25 bn) in the account as of Oct. 31. A Deltec spokeswoman didn’t immediately have a comment.

Tether has grown to become one of the most traded digital assets but has been shrouded in concern that it’s not actually backed by dollars as its creators claim. Much of that uncertainty has arisen because Tether refuses to be audited and has kept investors in the dark about its banking relationships.

Deltec is an “independent financial services group that delivers bespoke solutions,” according to the bank’s website.

In October, Tether has broken out of its historically tight trading range around $1, fueling uncertainty that investors may be losing faith in the coin.

Many investors who bought Tether through Bitfinex are now trying to dump their holdings for Bitcoin, Alex Michaelis, co-founder of researcher CoinSchedule, said in an email.